Warner Music Group acquires assets of Doug Morris’ 12Tone Music
Warner Music Group (WMG) and 12Tone Music “have entered into a deal” which will see the Big Three label “acquire the assets” of the three-year independent label.
Warner Music Group and 12Tone Music ad the transaction this morning, via an official statement that was shared with Digital Music News. Former Sony Music and Universal Music director Doug Morris created 12Tone in 2018, and the label had “more recently” signed a distribution deal with WMG’s ADA, the text notes.
Additionally, creators like Anderson .Paak (who partnered with Bruno Mars as Silk Sonic, the duo’s debut album due out later this year), DJ Illenium and Joelle James “call 12Tone home,” according to the company’s website. Dolly Parton posted a Holly Dolly Christmas via 12Tone, and on the IP side, the entity has an interest in works like that of Lauren Daigle Find a child.
Although financial details of the sale were not disclosed in the press release, the deal “is expected to be concluded by the end of July,” and Doug Morris, 82, “will continue to be actively engaged on a daily basis. activities of the day.
Addressing the deal in a statement, former Warner Music US CEO Doug Morris said, “After leading the Big Three music companies, I loved going back to my independent roots by launching 12Tone. I want to thank Steve Bartels and the 12Tone team for playing such an important role in the picture.
“This three-year race has been a lot of fun. I look forward to staying fully engaged with the WMG team, who are exceptional professionals. Special thanks to Max [Lousada, WMG’s CEO of recorded music] – I know the music couldn’t be in better hands.
The purchase represents the latest in a recent string of high-profile moves by Warner Music, which saw its recorded music revenue jump 17% year-on-year in the first three months of 2021, to $ 1.059 billion. On the investment side, the Access Industries subsidiary has supported the market for game mods Overwolf, Roblox (in a $ 520 million hike before the IPO), Rotana Music and the platform Wave virtual concerts in the first seven months of 2021.
As for purchases and partnerships, the company acquired Moscow-based Zhara Music at the end of March and established Atlantic Records Russia overnight. (Atlantic Records itself partnered with independent label vnclm_ last week.) Following the announcement of a multi-year licensing deal with Tencent Music the same month, April brought with it a “podcast development deal.” innovative ”between WMG and Spotify as well as the formation of a pan-Asian dance label, Whet Records. Finally, in June, Warner Music deposited $ 100 million on the recorded catalog of French DJ David Guetta.
At the time of this article’s publication, shares of Warner Music Group were up nearly 3.5% from yesterday’s close, at a per share value of $ 36.53. While the figure marks a slight decline from WMG’s value at the start of 2021, it also reflects an increase of around 6.5% over the past month and a 22% increase since the IPO of the company in June 2020.